California Prenup Financial Disclosure Requirements
A careful California prenup process identifies assets, debts, income, businesses, real estate, trusts, and other material financial interests before the agreement is signed.
Why financial disclosure matters
California Family Code § 1615 addresses financial disclosure, waiver, and knowledge when enforceability is challenged on specified grounds. A clear disclosure record helps both parties understand the financial rights being affected and reduces later disputes over what was known before signing.
What should usually be disclosed?
- Bank and brokerage accounts
- Retirement accounts
- Real estate and mortgages
- Businesses, partnerships, and professional practices
- Trust and inheritance interests where relevant
- Equity compensation, options, RSUs, and deferred compensation
- Cryptocurrency and alternative investments
- Significant debts, guarantees, and other financial obligations
Schedules and supporting documents can help
Many agreements use attached schedules identifying each party’s assets and obligations. Depending on the circumstances, account statements, tax returns, entity records, appraisals, or other supporting documents can make the disclosure more meaningful.
Complex assets require more than a balance
A closely held business may require information about ownership percentage, entity structure, debt, distributions, valuation, and restrictions. Trust interests and private investments may also require context beyond a single estimated value.
Can disclosure be waived?
California law addresses written waiver of further disclosure in specified circumstances. Whether a waiver is effective is a legal question and should not be treated as a shortcut for a careful disclosure process.
Frequently asked questions
Do we have to exchange tax returns?
Not in every case as a universal rule, but tax returns may be useful depending on the income, businesses, and financial issues involved.
Do I need exact values for every asset?
The appropriate level of detail depends on the asset and the circumstances. Material assets should be identified clearly enough for meaningful disclosure.
What if a business value is uncertain?
The agreement can identify the interest and the information available, and counsel can determine whether a valuation or additional documentation is appropriate.
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